8 Ways to invest in Real Estate without buying Property

The real estate market goes through its ups and downs every year. That’s due to the fact that the mortgage crisis took place not too long ago. In fact, more and more people are becoming risk-aware when it comes to investing into the real estate market.

 

Additionally, investors have found lots of other ways to invest in the market without actually buying the property, making it easier to avoid any possible consequences. Therefore, if investing in the real estate market without legally purchasing the properties sounds like something that you would be interested in, you have come to the right place!

Source: Pixabay

 

However, before testing out the waters and finding the way to invest in the real estate market, make sure to do thorough research on the current situation on the market and current property values. That is something that Washington Brown can definitely help you with!

 

1.Real Estate Investment Trusts (REIT)

REITs have definitely made investing in the real estate market faster and more efficient. They are allowing individuals to buy shares in commercial real estate portfolios who receive their income from a variety of different properties. For example, healthcare facilities, apartment complexes, data centers, hotels, cell towers, etc.

The thing that has made REITs so popular throughout the 1960s up until today is the fact that they allow you to earn a share of commercial real estate ownership income without having to actually go out and buy the property!

 

2. Real Estate Mutual Funds

Another great option for an investment into the real estate market is purchasing a real estate mutual fund, along with other individual investors, of course.

Both REITs and real estate mutual funds have become investors’ favorite options due to the fact that they allow individuals with limited capital access to still test their luck with the real estate market.

Additionally, real estate mutual funds are investors’ beloved because they mitigate risk, which can be a great choice if you are just getting into the market!

 

3. Real Estate Company

On the other hand, lots of people tend to overlook REITs and real estate mutual funds in favor of investing directly into real estate companies.

While this may sound more compelling, you should be aware of the fact that, even if you find the perfect real estate company that you would like to invest in (because due to their lack of advertising, they can be somewhat hard to find), their dividends are usually quite lower than the ones that you would be offered with by REITs.

 

4. Exchange-Traded Funds (EFTs)

Simply put, an exchange-traded fund is a fund that owns underlying assets such as bonds, oil futures, shares of stock, foreign currencies, etc.) and then divides the ownership of those assets into shares.

So, if you invest into an EFT, you are basically investing in a fund that already invests in real estate investment trusts!

Related Article:

invest-in-real-estateHow to invest in real estate: 5 easy ways to get started

If done right, a real estate investment can be one of your most profitable and lucrative investments. What most people feel is that it is very difficult to get into the real estate market. But like any other career, it is all about taking the first step. If you have ever thought about, or even considered, getting into real estate investment, here are 5 easy ways for you to get started. Read more

5. Real Estate Crowdfunding

Although this strategy is somewhat new to the real estate market, it is brilliant nonetheless! It’s quite simple – along with hundreds of other investors, you can invest a little as a couple of thousand dollars and join a real estate crowdfunding. Also, you should keep in mind that there is no need for accreditation!

 

6. Mortgage REITs

The way mortgage REITs function is by financing the income-producing real estate. The best thing about this type of investments is the fact that they benefit from higher interest rates – which means that you will be getting a better return as well!

financing real estate

Source: Unsplash

 

7. Interval Funds

This type of a fund is actually a closed-end fund whose shares do not trade on the secondary market. But instead of trading on this market, they offer to buy a certain percentage of outstanding shares at NAV. There are currently more than twenty registered interval funds, who usually invest in catastrophe bonds, real estate securities, hedge funds, small business loans, and other illiquid assets.

 

8. House Flipping

While all of the previously mentioned seven ways of investing in real estate do not require you to actually purchase a property, house flipping does. However, the concept is quite simple – buy a real estate at a low price, make it the best version of itself it can be, and then sell it!

This is probably one of the most interesting and engaging ways of investing in the real estate market, but it can get quite tricky if you do not have a clear vision and strategy. So, if you do not yet know anything about real estate depreciation, haven’t yet considered cost planning, etc. make sure to do as much research on the subject before getting yourself into house flipping!

As you can see, there are lots of different ways of investing in real estate without actually having to buy property, so pick out the one that seems to suit you best! Happy real estate hunting!

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